Recently I've began looking back into investing in cryptocurrency, and found out that in the last quarter of 2020 China began trialling it's own central bank's cryptocurrency called the Digital Yuan.
If you don't know anything about cryptocurrency you can think of it as digital money, and it's program/code is maintained by a network of computers, with a interlinked digital ledger that records all transactions.
A central bank digital currency (CBDC) is a cryptocurrency created and controlled by a government network, it is also official legal tender. This gives the government unprecedented power over the economy, as this quote from Reuters explains about China's CBDC trial:
"Widespread use of the digital yuan would give Chinese policy makers greater visibility into how money flows around China’s economy.
This would help them track any illicit flows of funds, such as money laundering or terrorist financing, and it would also allow them to experiment by targeting monetary policy interventions on specific economic classes, regions or other groups." Source
Although anti-Chinese government narratives are very popular in the mainstream media, the above doesn't only apply to China. Currently a large number of central banks are in the process of researching and creating their own CBDC. Source
In my journey of researching into crypto I came across this youtube channel called Coin Bureau with the presenter Guy. Guy explains brilliantly the potential for control that CBDC offers...
From Guy's Videos:
Centrally issued.
Centrally controlled.
Non Fungible. (Meaning each Token has it's own unique identification.)
Guy also talks about the issue of Dollarization. This essentially means that the U.S. Dollar is the reserve currency of the world for many countries, it's the fall back currency for when nation's own currency or economy collapse.
Direct Solution To This Problem.
Using decentralized crytocurrencies as actual currency, and not just as a means of making money. Their are a number that are actively trying to become currency like; Bitcoin Cash, Dash, Smartcash, etc.
Edit: I published this post by accident... I woke up and their were a bunch of comments and votes. It was supposed to be a draft. I'll leave it up and make a better one.
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